SolarPVInvestor Forums

Time to die....


STP nothing but 600MW left, Solarworld and LDK on deathbed.....

Encouraging we are on road to recovery.... And it's happening quickly....

Lol from CC. They want to ramp up module and wafer production to 80%. This is just crazy

Quoted from "sony1"

Lol from CC. They want to ramp up module and wafer production to 80%. This is just crazy

They can dream all they want. They're also looking for potential investors who understand "our potential capacity". They sold me on that potential from mid 2010 into spring of 2011. Thanks, but no more.

Based on ER they missed guidance on revenues by $100-$150M. This level of miss based on the Q4 guidance must means several projects did not sell. These I would speculate were in China and were taken over by the financing arms that were building them. All speculative but they did have several projects of size in China. From the con call, they have very limited project sales in the next several quarters and the ones that were mentioned were oversees.

A good measuring stick was the wafer per piece at $0.95-$1 per piece. That places ASP at 4.2W per piece around $0.23-$0.25 or flat and inline with most major reporting sites.(for those interested in SOL)

LDK revenue guidance is less than operational expenses and interest. I can not fathom a local entity wanting to invest in the company. I could see, more assets being sold off.


What is clear to me is the capacity is being given to the debt holders and friends to operate and it will not go away. When the Mahong facility is close to operations, you may expect that this too will be given to those that are friends. I believe that is what Jack means about investors that understand their capacity potentials.

That is all not relevant now as equity is negative and heading more negative for shareholders with no potential to get positive from operations in the next several years.

Quoted from "explo"

I don't understand either. How can the company have negative equity (almost half a billion!) without authorities appointing a BK lawyer to protect the claims of employees, suppliers etc.? In my world, once the equity is gone you owe more than you have and thus blew it and a lawyer takes control of your assets to distribute creditors' claims lawfully. Of course in this distribution shareholders' always gets nothing except the freedom to not have to pay the company's liabilities. Let's see how it trades. Stocks trading on U.S. exchanges do not seem very value focused anyway. Book value per share -3 USD..

I could be completely off but negative shareholders equity indicates zero earnings from the business and no stock value for original offerings. While it is indicative to company in huge distress, it is also a balance sheet of organization which is under huge market stress and sure should be consider a risk for a conservative investor.
I just want to point out that CSUN as you know have negative equity, and with next three quarters more companies may have the same condition. I am seeing a lot of disapproval for LDK, I am curious if the group will feel the same when more favorite corporations will join this condition.

Sure but for the next three quarters we will see further erosion of equity, simply due to losses?
Any concern on this, or does it matter?

I wonder if the hope of a credit line is a factor ...

http://www.bloomberg.com/news/2013-04-18…-estimates.html

My guess is that there is a voluntarily bankruptcy and involuntarily bankruptcy. It looks like LDK is not going to start BK proceedings themselves. So it is up to the bondholders (the defaulted ones), if they want to, to put LDK out of its misery and start the BK process.